Turkey's Peace Process With Kurds Falters

ISTANBUL—Beset by a fast-sliding economy, domestic unrest and fears over blowback from Syria's civil war, Turkey's government faces a new and potentially more dangerous threat—the faltering of efforts to end the country's three-decade Kurdish conflict.

Kurdish leaders gave conflicting statements Thursday about whether the withdrawal of militants from Turkish territory under a May cease-fire agreement with Ankara would continue. Some...